Deutsche Bank Examined Credit Suisse Deal Options Before Overhaul

sources say any buy by Deutsche Bank is now on hold. It appears that way. The source is saying it could also be reactivated if Credit Suisse does put more assets on the market. People close to the matter telling us that Deutsche Bank, the German bank, was looking very closely at specific Credit Suisse assets that might have been put on the market as recently as last fall, right after Credit Suisse announced in October their dramatic restructuring or revamp of operations. Again, that was put on hold. And the revamp at Credit Suisse came in the wake of billion-dollar losses and high-profile scandals such as the blow-up of Arkegos and the Greensilverbuckle. Now, we're told Deutsche Bank analyzed closely individual businesses such as Credit Suisse's asset management and their wealth management units.

We're told those are areas that Deutsche Bank is looking to grow within its own bank. People also say the plan inside Deutsche was to be able to move quickly should attractive parts of Credit Suisse come onto the market. Again, all of that on hold at this point. It does appear to be the second time in recent years that Deutsche Bank CEO has brainstormed about a potential move on the Swiss bank, as you may recall, a key part of the official reorganization at Credit Suisse involved divesting its securitized product business while spinning off its capital markets business, but it did stop short of further significant sales. What's the latest when it comes to that revamp? Well, the consensus appears to be that Credit Suisse's major reorganization has done little to resolve the crisis of confidence that has really been plaguing the bank for some time now. You're looking at 80 yards, which are down year-to-date. And if you look at the big picture, the two-year chart for the Swiss bank's shares, they've lost about two-thirds of their value over that time.

Analysts remain concerned about Credit Suisse's ability to pull off a complex overhaul, particularly amid huge deposit outflows, departure of key staff, and in contrast, you've got Deutsche Bank recently reporting the highest annual profit in over a decade. So it appears the German bank, from what we're being told, waiting on the sidelines and watching as Credit Suisse goes through.

Bloomberg